Greenland’s government has issued a “strong warning” to Greenland Energy after equipment for exploratory oil drilling was brought ashore on the island’s eastern coast without approval from the local authorities.
The Texas-based company, which is connected to figures in Donald Trump’s circle, says it is seeking the remaining permissions needed to drill in the Jameson Land region. The government said all future logistical activity must be advised and approved by its mineral resources authority before it takes place.
At a glance:
- Greenland Energy has claimed that as much as $1tn of crude could lie beneath Jameson Land.
- The company announced plans to spend $60m on two exploratory wells, but later told shareholders that one well would be drilled initially.
- Greenland stopped issuing new oil licences in 2021 on environmental grounds, while UK company 80 Mile holds exploration rights in Jameson Land.
- A vessel carrying 300 containers of drilling equipment is expected to leave Canada on 12 September, with drilling planned to begin in October, according to a company representative.
What Greenland’s government said
The government said materials intended to prepare for drilling were unloaded at Nunap Qeqqa, in Jameson Land, after a tug and barge were seen approaching the sparsely populated area. Denmark’s investigative outlet Danwatch quoted the shipping company’s head as confirming the delivery was for Greenland Energy.
Greenland said it would not be proportionate to require the equipment’s removal. However, it said the company’s application for permission was still being processed and that no approval had been granted for the landing of the kit.
The company’s drilling plans
Greenland Energy executives have said the Jameson Land region may contain $1tn of crude. The company originally announced a $60m plan to drill two wells to investigate the claim, but a letter to shareholders said one well would be drilled first after recent meetings with Greenlandic regulators and oversight authorities.
The company said those meetings had been constructive and that it remained encouraged by progress toward the approvals required for drilling. A representative said the equipment vessel was due to sail from Canada on 12 September and that the wells would be sunk in October.
Why the project is politically sensitive
Greenland is a semi-autonomous territory of Denmark, and decisions over its natural resources rest with Greenland’s elected leaders. The planned wells appear to fall within a conservation area protected under the Ramsar convention on wetlands, according to the supplied source material.
The project comes as Trump renews threats to claim Greenland. Greenland Energy chair and major shareholder Larry Swets has said the oil project is not related to American annexation, while the company has also appointed a US navy veteran involved in Trump’s Golden Dome missile-defence plan as a director.
Company links and previous confusion
Greenland Energy was established in Texas last year and has retained Phil McGraw, known as Dr Phil, to make a documentary series about the project. McGraw previously served on Trump’s religious freedom commission.
After a company representative incorrectly said at a June Jameson Land community meeting that permission had been granted to land drilling equipment, Swets said the company’s enthusiasm had created confusion. Greenland Energy declined to respond to questions from the Guardian.
Questions readers ask
Has Greenland approved the drilling equipment or wells?
No. The government said no approval had been granted for the equipment landing, and the application for permission remained under processing.
How many wells will Greenland Energy drill?
The company initially announced two exploratory wells but later told shareholders that one well would be drilled to begin with.
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